Thomas, Twilight Sparkle, Luke, ,Skarloey, Rheneas, Sir Handel, Peter Sam, Rusty, Duncan, Applejack, Pinkie Pie, Fluttershy, Rainbow Dash, Rarity, are hanging a shaggy, candy-loving dog named Doogal he tries to get sweets from a candy cart. He goes so far as to place a tack in the road to pop its tire, thinking to be rewarded for watching the cart. After convincing the driver to leave, Dougal tries to decide which candy they will request when Doogal accidentally starts the cart up again and causes it to collide with the titular magic carousel at the center of the village. A blue jack-in-the-box-like creature emerges from the top and flies away, followed shortly after by a Foot Guard figurine that is thrown off the carousel. The carousel freezes over, trapping repairman Mr. Rusty, Dougal's young owner Florence, and two other children named Basil and Coral within an icy cell.
The villagers "who are all animals" are horrified by this development, and therefore call upon the resident wizard, Zebedee, also a jack-in-the-box-like creature, for help. He explains that the roundabout acted as a mystical prison for the evil ice wizard Zeebad. With it broken Zeebad is free to work his magic on the world again (it is implied he started the first ice age). The only way to return Zeebad to his prison is to place three magic diamonds in the carousel, or watch the world slowly freeze over again. Zebedee sends Dougal, Brian the cynical snail, Ermintrude the opera-singing cow, Dylan the hippie rabbit, Thomas, Twilight, and the others to accomplish this mission along with a magic train who can be summoned by a magic remote. When Zeebad crash lands, Queen Chrysalis requests to join forces with him, which he does and he animates the Foot Guard figurine, Sergeant Sam, to be his henchman and enlists him to find the enchanted diamonds first, for with them Zeebad can freeze the sun itself. Meanwhile, Zebedee's fellowship makes camp in the icy mountains near Zeebad's old lair. Dougal and Pinkie wander off during the night and are captured by Zeebad and Queen Chrysalis. Ermintrude breaks him out of his prison; after a short chase, Zebedee shows up to battle his evil counterpart. Zeebad gains the upper hand (due to Chrysalis' magic) and overpowers Zebedee, freezing him and collapsing the cliff on which he stands, where he is presumed to be dead.
Mourning for their dispatcher, Dougal and his friends embark to recover the diamonds. This task takes them to a lava-bordered volcano and an ancient temple filled with booby-traps and evil skeleton guards (at which point Dylan reveals an exceptional knowledge of several types of martial arts). then they get chased by Zeebad, Queen Chrysalis, and Sam on a driller-train, then Brain and Fluttershy accidentally slip out the location of the third diamond. Before the final showdown with Zeebad and Queen Chrysalis, Sergeant Sam makes a stand to Zeebad and Queen Chryslis by charging them on a moose "who was present before" for being bossed and made to bad things. This plan fails and Sam is wounded, Zeebad and Queen Chrysalis discover that Sam contained the third diamond in his chest, which causes Zeebad's life spell on him to wear off. Zeebad and Queen Chrysalis obtain all three diamonds during the course of the film, and attempt to freeze the Sun. Ermintrude, Brian, Dylan, Thomas, Twilight, their friends, and finally Dougal intervene to stop him; when they have done so, Zeebad is imprisoned in the carousel again, Queen Chrysalis is sent flying away from the diamond's powers and Zebedee is restored to his friends. The ice surrounding the carousel melts, freeing the people trapped therein; of them, Florence is comatose and is revived by a desperate Dougal. The moose, whose color had been changed from brown to blue by Zeebad in the earlier scenes of the film, is restored to his true color by Zebedee. As everyone goes for a ride on the carousel. At this point, Sam is restored, and placed back on the carousel which functions once again. Dougal, who vowed to give up sugar when it seemed all was lost, forgets his former pledge completely, but now realizes the true value of his friends and the good qualities of selflessness, courage, and humility.
- Queen Chrysalis will be working with Zeebad.
- The rest of the team are absent in this film due to them taking the USS Missouri on training exercises.
- The opening scene/Zebedee's dream
- The candy cart incident/Frozen carousel
- The journey begins/setting up camp
- Dougal and Pinkie captured/Zeebad vs. Zebedee
- The first diamond/flight over the sea
- The old temple/second diamond
- The Train Chase
- Cold night/
- https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipPC2DRxAdFTFejkaENLYjHD5VDO2u7nQVNPVYkD?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdnPart 1: https://plus.google.com/100495329807899486850/posts/gzUdGLZniG6?pid=6339549347974533186&oid=100495329807899486850
- Part 2: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipNOHy4XxINRihrZuzhhuAlVAe4S_vKIVo59kn8B?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 3: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipOJm2-DOQ55aU78ZbYU5xBo_K-9rOLMHhXi7pTc?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 4: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipM6asUO7TqA3Ty19jq0VGtBA4Lxe9ppC7O8s3l9?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 5: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipNZ9KcSozoGFmrFs6YfQilnWw7B-O-0P0S0scVe?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 6: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipMr9aTchreYpTHdiXWpl2N-3AcjC3y1R0GFQ-BF?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 7: https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipPC2DRxAdFTFejkaENLYjHD5VDO2u7nQVNPVYkD?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn
- Part 8 (final part) https://photos.google.com/share/AF1QipM1lAzjdZlkPNq2EevLYU7XdXIGImUys003KcxRwP27BTRN85zO6dam9toZwZpUGQ/photo/AF1QipMwrz7HTHw9WCxaM11UYaTYdvP1Uiv9DopKk1W-?key=YUMzdzdGZEpDNTNqTnhmTmtnbXRadUlNLXRUOTdn